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Afghanistan(1978-2012) AnAdvantage or Curse for PakistanEconomy


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Introduction to Afghanistan Afghanistan is located between Central Asia, South Asia

and the Middle East

It neighbors Iran, Pakistan, Uzbekistan, Tajikistan,Turkmenistan and China


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Recession in economy The countrys near-total dependence on aid. More than

90 percent of the national budget comes from foreign

donations. Much of the Afghan governments revenue is derived

from American military and civilian spending.

In last some year Income per person in Afghanistan is

$528 a year.


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Rise in economy The economy of Afghanistan has improved since 2002

due to the foreign aid and investment

Improvements in agricultural production Afghanistan still remains one of the poorest and least

developed countries in the world that is highlydependent on foreign aid

Now the capita per income lies $1000 The Karzai administration along with international

donors have remained committed to improving accessto these basic necessities by prioritizing infrastructuredevelopment, education, housing development, jobsprograms, medical care, and economic reform


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MAJOR ECONOMIC INDICATORS GDP: $29.99 billion

Per capita Income: $1000

Growth rate: 7.1%

Labor force: 15 million

Inflation rate: 7.7%

Unemployment: 36%


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GDP Composition

0

5

10

15

20

25

3035

40

Services Industry Agriculture

GDP


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Per capita income

750

800

850

900

950

1000

1050

2009 2010 2011


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Major Export Partners

0

5

10

15

20

25

30

Percentage

india

pakistan

USA

Turkmenistan


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Major Import Partners

0

5

10

15

20

25

30

Pakistan

USA

India

Russia


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Major Export Items Opium

Fruits and Nuts

Hand woven carpets

Wool

Cotton

Precious and semi precious gems


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Major import items Food

Textile

Petroleum products

Machinery

Tea

Synthetic fibres


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Relationship with Pakistan Very close yet tense relationship

Ups and downs have been seen

The Pakhtunistan issue, the Soviet union in the80s, Pakistans close relationship with the

Taliban and the terrorist attacks of 9/11 have

frequently affected the relationship The two countries share a 2500 km long border

known as The Durand Line


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Impact on Pakistan Smuggling of food items

Unauthorized entry of weapons and militants

Shifting of refuges in Pakistan

Unsocial activities of militant throughAfghanistan in Pakistan


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Impact on Pakistan Pakistan found the new target market for

exporting like petroleum products

Import of different items

Legal cheap labour from Afghanistan

Pakistan being the nearest country so it can

strong hold the afghan market as compared toothers


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Conclusion In conclusion we can say that Afghanistan has

had both negative and positive impact on the

Pakistani economy after the war. We have benefited from cheap labour and a

new market full of opportunities. On the other hand we have been harmed due to

the security situation in Afghanistan which hasspilled over into Pakistan causing terrorism andmilitancy to rise and effect the economicgrowth of Pakistan.


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Thank you.

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